STRATEGIC MANAGEMENT

COMPANY ANALYSIS

ADMIN GROUP 7
SHLOK SHETTY H031
KEVIN DESAI H032
AMAN JAIN H033
 INTRODUCTION
• BERKSHIRE HATHWAY is a publically owned investment manager, that
oversees and manages over 70 companies.
• It was found in 1889 and is based in Omaha, Nebraska.
• Many of its subsidiaries, a company controlled by a holding company,
are insurance businesses, so it mainly engages in that business.
• Berkshire does have a final say in selecting the Chief Executives. But it
does not get involved in the day to day affairs.
 ABOUT WARREN BUFFET
• Warren Buffet is the largest shareholder and CEO
of BERKSHIRE HATHWAY and is currently the third
richest man in the world according to Forbes
with a net worth of 81 billion dollars.
• His company, Berkshire Hathaway, owns 63
companies. He writes only one letter each year
to the CEOs of these companies, giving them
goals for the year. He never holds meetings or
calls them on a regular basis.
• Warren Buffet has pledged 85% of his fortunes to
the GATES FOUNDATION
 KEY INVESTMENTS
• BERKSHIRE HATHWAY owns over 70 companies, but its top 6 companies
are-
• McLane Company, Inc
• Burlington Northern Santa Fe, LLC
• Geico
• Berkshire Hathaway Reinsurance Group
• Lubrizol Corporation
• PacifiCorp
 VISION

“BERKSHIRE HATHAWAY STRIVES TO BE THE

LARGEST AND THE MOST INFLUENTIAL INVESTMENT
COMPANY IN THE WORLD.”
 MISSION
“TO INVEST IN AND BUILD A PORTFOLIO OF SUSTAILABLE
INVESTMENTS, DRIVEN BY ESTABLISHED GOALS TO BUILD
SHAREHOLDER VALUE, MINDFUL OF ITS SOCIAL,ECONOMIC
AND ENVIRONMENTAL REPONSIBILITIES, AS IT REMAINS TO BE
COMMITTED TO INTEGRITY,HONEST, AND FAIRNESS IN ALL
DEALINDS WITH ITS SHAREHOLDERS.”
DIVERSIFICATION
STRATEGY
UNRELATED DIVERSIFICATION +CO-OPERATION-ACQUISITIONS
Acquisition of high-growth potential businesses

Keep on growing with

more and more
No change. acquisitions
Target’s Existing one
retained
 TOP 5 ACQUISITIONS

• Precision Castparts Corporation

• BNSF Railways

• Kraft Heinz

• Gen Re

• Lubrizol
FAILED STRATEGIES

Kevin Desai TYBBA H032

 Dexter Shoe Company
• In 1993, Berkshire Hathaway acquired Dexter
Shoe Company for $443 million in Berkshire
Hathaway shares.
• Eventually failed in 2001.
• Cost investors $3.5 billion, as per value in 2007.
• Berkshire Hathaway had $415 million shares at the end of
2012.
• Remained heavily invested.
• In 2014, Tesco overstated their profits and shares tumbled.
• Cost the company $444 million after tax loss.
• In 2007, Berkshire Hathaway purchased 85 million shares worth $7
billion, when the prices of oil and gas were at peak.
• But going towards the end of the year, prices of gas and oil fell
dramatically.
• Bringing the market value of the investment down to $4.4 billion.
THANK YOU